Frasers Hospitality Trust (ACV) H2 2024 earnings summary

Executive summary

• Gross revenue rose 7.6% year-over-year to S$132.5M in FY2024, driven by growth in Europe, Malaysia, and Japan, and new retail contributions from Koto no Hako (ANA Crowne Plaza Kobe).

• Net property income increased 2.1% year-over-year to S$92.5M, with topline gains partially offset by higher property taxes and expenses.

• Distribution per stapled security declined 7.5% year-over-year due to higher finance costs and increased tax expenses.

• Portfolio value grew 2.9% year-over-year to S$2.0B, mainly from the inclusion of Koto no Hako and higher valuation of The Westin Kuala Lumpur.

Financial highlights

• 2H FY2024 gross revenue was S$69.2M, up 13.6% from 2H FY2023; net property income was S$47.8M, up 5.5%.

• Income available for distribution in FY2024 was S$48.3M, down 7.5% year-over-year.

• Distribution per stapled security for FY2024 was 2.2592 cents, down 7.5% year-over-year.

• Distribution to stapled securityholders for FY2024 was S$43.5M, with a payout ratio of 90%.

• Net asset value per stapled security was S$0.6574 as of 30 September 2024.

Outlook and guidance

• IMF projects global GDP growth of 3.2% in 2024 and 2025; international tourism expected to recover despite economic and geopolitical risks.

• Downside risks include tight monetary policy, regional conflicts, FX volatility, and slower growth in China.

• Markets anticipate potential rate cuts by end-2024; MAS maintains current SGD policy band.

• Focus remains on capital management, operational efficiency, and integrating sustainability.

• International tourism has rebounded to 96% of pre-pandemic levels, with full recovery expected by year-end.